3.94.040 Tax exemption – Duration – Valuation – Exceptions.
A. Exemption, Duration Of. The value of new housing construction, conversion, and rehabilitation improvements for market rate property qualifying under this chapter is exempt from ad valorem property taxation for eight successive years beginning January 1st of the year immediately following the calendar year of issuance of the final certificate of tax exemption and 12 successive years beginning January 1st of the year immediately following the calendar year of issuance of the final certificate of tax exemption for affordable housing qualifying under this chapter.
B. Limits on Exemption. The exemption does not apply to the value of land or to the value of nonhousing improvements, nor does the exemption apply to increases in assessed valuation of land and nonqualifying improvements. This chapter also does not apply to increases in assessed valuation made by the assessor on nonqualifying portions of building and value of land, nor to increases made by lawful order of a county board of equalization, the Department of Revenue, or a county, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law. In the case of rehabilitation of existing buildings, the exemption does not include the value of improvements constructed prior to the submission of the application required under Chapter 84.14 RCW.
C. The following exceptions apply to development within the urban center:
1. Projects on property zoned Downtown Urban Center, as shown on the city’s official zoning map, must have a minimum of 50 units to qualify for the exemption.
2. Newly constructed or rehabilitated market rate units do not require a minimum per unit investment to qualify for the exemption.
3. Newly constructed or rehabilitated market rate units with a minimum investment of $130,000 average per unit annually adjusted for inflation by the Consumer Price Index as of the passage date of the ordinance codified in this section (August 17, 2009) and 20 percent or more of the units priced as affordable units shall qualify for the exemption. (Ord. 6482 § 2, 2013; Ord. 6257 § 1, 2009; Ord. 6020 § 1, 2006; Ord. 5779 § 1, 2003.)